Having had a client whose blueprint for a very hush-hush new radar system was copied and manufactured by the potential customer they were in discussions with in the Far East , I’ve witnessed the problems connected with holding on to intellectual property rights. (See below two new books on the subject). That incident happened over ten years ago and still other similar battles are erupting all over the globe.

The scope of the problems surrounding intellectual property rights in our globalised world is vast – how far can copyright and patent-holders go in preventing others from taking their property? Intellectual property protection is not a field of bright lines and clear rules. And, the economic consequences of the dispute are also immense.

Those of us who work in the field of cross-cultural relations and intercultural communication have witnessed too often the negative impact of an overseas assignment on family life. Now, a recent international survey provides evidence that a lack of spouse or partner employment opportunities adversely affects global mobility of highly skilled international employees, adding weight to the argument that more consideration should be given to these employees’ family concerns.

Undoubetedly, the spouses and partners of internationally assigned staff tend to be highly educated, with diverse professional backgrounds and nationalities. However, as part of a foreign assignment, they soon become a much under-utilised talent pool.

One employer cautions: “In my experience most employers prefer to ignore spousal employment issues. However, from my personal observation how well a spouse settles is key in determining how an employee will perform. If spousal employment is important to that couple, then companies ignore it at their peril.”

The study suggests that there appears to be a clear link between working and positive feelings about a foreign assignment:

• Spouses who are working are more likely to report a positive impact on adjustment to the location than spouses who not working.
• Spouses who are working are more likely to report a positive impact on family relationships than spouses who not working
• Spouses who are working are more likely to report a positive impact on their willingness to complete the current assignment than spouses who are not working.
• Spouses who are working are more likely to report a positive impact on their willingness to go on a new assignment than those who are not working.

Importantly, spouses who are working are more likely to report a positive impact on their health or well-being than spouses who are not working. One unfortunate respondent explained:

“The implications of not working on my health (especially mental health) are so vast that I will never consider relocating to such a country. I was unemployed for 1 year when I came here… and that was the most miserable year in my entire life. I will not repeat that, and my husband stands by my decision.”

The report concludes that a few focused and simple improvements on the part of employers and governments can make a triple win for families, employers and the countries in which they work. It seems, therefore, that supporting partner employment is part of supporting your own staff.

Footnote: The survey examined the views of 3300 expatriate spouses and partners of 122 nationalities, currently accompanying international employees working in 117 host countries for over 200 employers in both the private and public sector. It was undertaken by the Permits Foundation, based in The Hague and was sponsored by the Industrial Relations Counselors (IRC). Conducted during late 2008, it was published early 2009.

When is a gift not a gift?
When it’s unwelcome of course!
And that’s the warning that western marketers should take heed of.

In the western commercial world, marketers often use pleasant surprises to influence consumers’ brand evaluations and purchasing decisions, but surprises are not always held to be pleaurable in some cultures. Marketing across cultures is a minefield and anyone in this line of business should be wary of different cultural responses to promotional gifts, especially the unexpected ones.

 However nice the gift may be, the surprise element can make some recipients feel uneasy – and its nothing to do with thoughts of bribery and corruption. East Asians genuinely feel their emotional balance has been disrupted because an unexpected gift indicates imbalance and prophesises bad fortune. People in the Nordic countries tend to feel suspicious. Americans, on the other hand, are delighted.

A new cross-cultural study of consumer response has recently been published which suggests that East Asians’ enjoyment of  ‘surprise’ gifts is much increased  when the gift is attiributable to luck.  So, for example, it is far more acceptable to have consumers enter a “Lucky Game” to win the gift. Undoubtedly, marketing activities across borders must accomodate cross-cultural differences.

 About the study: Ana Valenzuela, Barbara Mellers, and Judi Strebel. “Pleasurable Surprises: A Cross-Cultural Study of Consumer Responses to Unexpected Incentives.” Journal of Consumer Research: February 2010 (published online July 15, 2009).The authors conducted four studies in which participants received a gift as a token of appreciation for participating in a survey. Some of the participants knew about the gifts before participating, while others were surprised.

The economic climate and globalisation has made industries more competitive so it is vital for organisations to have the right international skill set.  With the challenges of new markets, globally distributed remote teams,  the enormous changes happening in the workplace where people of all different nationalities are thrown together and different communication styles across the globe, it’s a sure bet that CULTURAL DIVERSITY is today’s business reality.  Our future clients and colleagues will be more likely to want to do business with us if we can demonstrate an authentic understanding for their culture, business needs and communications styles. You cannot afford to get things wrong!  International managers armed only with easy-to-learn, fast-to-recall cultural dimensions and differences will find themselves stereotype rich and operationally poor in today’s business reality of complex cultural organisations and culturally diverse customers. Ensure a positive difference for your business performance ,as well as for the people within it, by learning how to embrace cultural diversity profitably!

Marks & Spencer has just learned how expensive the transaction costs in international business are when you don’t do your homework properly. The opening of the first Marks & Spencer store on the Chinese mainland has been beset by many cultural problems – most of which could have been foreseen with a little research.  One of the most costly though was their complete lack of Market Research. Sir Stuart Rose, executive chairman of Marks & Spencer, admitted that the company “had misunderstood the local market” by assuming Hong Kong sizing would also apply to the mainland. “Shanghai clothing sizes were based on Hong Kong sizing, but the smaller sizes rapidly sold out” he explained. (FT February 10th 2009). Remember to do your cultural research – you can’t afford to get things wrong!

The cultural difficulties concerning the failed merger between Daimler and Chrysler are legendary, but not legendary enough it seems for Robert Diamond, president of Barclays Capital.  He found out the hard way that ignoring corporate culture can harm your business.  Eight weeks after the acquisition of Lehman Brothers’ US business much of the senior talent had left. Mr. Diamond’s famous ‘knee-jerk’ approach of getting rid of non-team players did not sit well with those he wished most to keep: “That approach is a style that is anathema to many of Lehman’s senior bankers who Mr. Diamond wants to retain, as well as the European bankers he’d like to attract” (FT November 3rd 2008).  It seems Mr Diamond has fallen foul of the first rule of an M&A – it’s people that make a business, it’s people you ‘buy’, and it’s people that are your most important asset – make sure you understand what makes them tick! Ignore culture at your peril.